Gold futures are up nearly 2% amid expectations of easing monetary policy by the U.S. Federal Reserve (Fed).
Spot gold prices have surpassed $2,500 per ounce for the first time in history, according to Bloomberg.
Macroeconomic data released in the U.S. this week has increased the likelihood of a Fed rate cut as early as September, analysts say. Traditionally, looser monetary policy tends to have a positive effect on gold prices. Additional support for gold is being provided by geopolitical instability in the Middle East. Since the beginning of 2024, the price of the metal has already risen by 20%.
Bart Melek, Global Head of Commodity Strategy at TD Securities, believes that gold prices could rise to $2,700 in the coming quarters. He cites strong U.S. macroeconomic data, which will continue to influence the Fed’s decision to lower rates, as well as ongoing bullion purchases by global central banks.